Category Archives: Broken Wing Butterfly

/GC BWB, /CL & /ZB Short Strangles, /6E remaining call vertical, /ZS IC closing trades, New /CL, /ZB Short Strangles

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/GC Opening trade setup

Closed the trade on Mar 23.
Loss (after commissions) = $329.68

/CL Open trade setup

Closed the trade on Mar 23.
Profit (after commissions) = $195.16

/ZB Opening trade setup

Closed the trade on Mar 31.
Profit (after commissions) = $319.20

/6E Partially closed trade setup

Closed the remaining trade on April 2
Profit (after commissions) = $67.28

/ZS Opening Trade setup

All legs expired worthless on March 27
Profit (after commissions) = $153.82

Opened Short Strangle in /CL on Mar 16. Opened Short Strangle in /ZB on Mar 19

SOLD -1 STRANGLE /CLM5 1/1000 JUN 15 /LOM5 62/30.5 CALL/PUT @.35
SOLD -2 STRANGLE /ZBM5 1/1000 JUN 15/JUN 15 /OZBM5 178/151 CALL/PUT @0”21

YTD P&L

/6E Iron Condor partially closed, /ES Broken Wing Butterfly closing trade, new /CL & /ZB Short Strangles

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/6E Opening trade setup

Bought back the PUT spread tested side on Mar 17.
Loss (after commissions) = $252.94

 

/ES Opening trade setup

Closed the trade on Mar 19.
Loss (after commissions) = $669.96

Opened Short Strangle in /CL on Mar 16. Opened Short Strangle in /ZB on Mar 19.

SOLD -1 STRANGLE /CLM5 1/1000 JUN 15 /LOM5 64.5/27.5 CALL/PUT @.42
SOLD -2 STRANGLE /ZBM5 1/1000 JUN 15 /OZBM5 181/149 CALL/PUT @0”23

YTD P&L

 

/GC (Gold Futures) Broken Wing Butterfly: 2/10/2015

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BOT +1 BUTTERFLY /GCJ5 1/100 APR 15 /OGJ5 1215/1210/1200 PUT @-1.40
Bullish bias
Order

Note: Commissions not included
Max. Profit = $640.00
Max Loss = $360.00
DTE = 44
BE = 1203.70
POP =~ 73%
Max ROC  = 640/360 =~ 178% – this is only if the underlying closes exactly at 1,210 (short strike) upon expiration.
Buying back the embedded short PUT vertical (-1205/+1200) for anything lower than 1.40 (credit collected for the trade) would turn the resulting regular butterfly (1215/1210/1205) into a risk free trade.

P&L diagram
Chart

/ES (E-Mini S&P 500 Index Futures) Broken Wing Butterfly: 2/2/2015

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BOT +2 BUTTERFLY /ESH5 1/50 MAR 15 /ESH5 1980/2000/2030 CALL @-3.75
Bearish bias
Order

Note: Commissions not included
Max. Profit = $2,375
Max Loss = $625.00
DTE = 45
BE = 2,024.00
POP =~ 63%
Max ROC  = 2,375/625 =~ 380% – this is only if the underlying closes exactly at 2000 (short strike) upon expiration.
Looking to buy the embedded short CALL vertical (-2030/+2020) for around 3.00.  Buying this for anything lower than 3.75 (credit collected for the trade) would turn the resulting regular butterfly (2000/2020/2050) into a risk free trade.

P&L diagram
Chart

/ES (E-Mini S&P 500 Index Futures) Broken Wing Butterfly: 1/6/2015 – Closing Trade

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Opening setup/trade (Jan 6, 2015)

Closing trade (decided to close the trade instead of waiting to buy back the embedded vertical)
SOLD -2 BUTTERFLY /ESH5 1/50 FEB 15 /ESG5 2000/2020/2050 CALL @-.25
Debit = $25

Profit = $375 (credit collected from opening trade) – $25 = $300
Total commissions (opening & closing) = $44.96
Profit incl. commissions = 300  – 44.96 = $255.04

/GC (Gold Futures) Broken Wing Butterfly: 1/6/2015 – Update 1

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Opening setup/trade (Jan 6, 2015)

Bought back the embedded short PUT vertical (-1190/+1185) for 0.30.
BOT +1 VERTICAL /GCJ5 1/100 MAR 15 /OGH5 1190/1185 PUT @.30
Order

The remaining regular butterfly (1210/1200/1190) is now a risk free setup.
P&L diagram
Max. profit at expiration would occur at the short strike (1200).  GC is trading around 1294, but there are still 31  day left to expiration.  As such there is time to decide on when to close the trade.

/ES (E-Mini S&P 500 Index Futures) Broken Wing Butterfly: 1/6/2015

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BOT +2 BUTTERFLY /ESH5 1/50 FEB 15 /ESG5 2000/2020/2050 CALL @-3.75
Bearish bias
Order

Note: Commissions not included
Max. Profit = $2,374
Max Loss = $625.00
DTE = 50
BE = 2,043.75
POP =~ 63%
Max ROC  = 2,374/625 =~ 380% – this is only if the underlying closes exactly at 2020 (short strike) upon expiration.
Looking to buy the embedded short CALLvertical (-2050/+2040) for around 3.00.  Buying this for anything lower than 3.75 (credit collected for the trade) would turn the resulting regular butterfly (2000/2020/2050) into a risk free trade.

P&L diagram
Chart

/GC (Gold Futures) Broken Wing Butterfly: 1/6/2015

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BOT +1 BUTTERFLY /GCJ5 1/100 MAR 15 /OGH5 1210/1200/1185 PUT @-1.40
Bullish bias
Order

Note: Commissions not included
Max. Profit = $1,140
Max Loss = $360.00
DTE = 50
BE = 1,188.60
POP =~ 57%
Max ROC  = 1,140/360 =~ 317% – this is only if the underlying closes exactly at 1,200 (short strike) upon expiration.
Looking to buy the embedded short PUT vertical (-1190/+1185) for around 1.00.  Buying this for anything lower than 1.40 (credit collected for the trade) would turn the resulting regular butterfly (1210/1200/1190) into a risk free trade.

P&L diagram
Chart